Automobile, gas purchases lead to rising retails sales

Retail sales increased for the first time by 0.6 percent in May, surpassing expectations by economists of a 0.50% increase. The catch? It is the purchase of automobiles and gas that turned what should have been a negative number into positive.

Courtesy of the WSJ:

Yet excluding autos and gas, all other retail sales fell a fourth straight time. Housing-sector sales dropped, as did restaurants, health stores, and department stores. People are reluctant to spend because of high job losses, depleted wealth, and debt burdens. The unemployment rate rose to 9.5% in June, a 25-year high. A Federal Reserve report June 11 said total net worth of households fell 2.6% in the first quarter.

Without the numbers from automobiles and gas, retail sales would have decreased by 0.20 percent.